First gold from Rose of Denmark

AuStar Gold is making progress at its Rose of Denmark (RoD) gold mine in Victoria, Australia, including the commencement of mining operations and processing of material for gold production
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First gold ingot poured from Rose of Denmark

Staff Reporter

PRESS RELEASE: AuStar Gold has commenced processing gold-bearing material mined from above the level of the main RoD adit. Initially stockpiled at the RoD mine, the gold-bearing material is being trucked and is now being processed at AuStar's gravity gold processing plant.

The average throughput rates seen for this RoD material are at a higher rate than the Morning Star Gold mine material previously processed due to the softer nature of the material being processed.

The gold mineralisation at the RoD mine contains both coarse particles of free gold and other gold that is intimately associated with sulphide grains. This results in a high-grade concentrate of sulphide and gold, some of which then needs further refining to fully recover the gold, as well as a portion of free-milling coarse gold.

AuStar Gold also said that mining is continuing without compromising future access along the main adit level. There are four zones targeted for mining based on the recent diamond drilling, with initially three being developed using traditional handheld mining.

Handheld mining allows each development advance to be closely sampled, assayed, photographed and geologically mapped. This programme allows the company to identify both the geological and metallurgical characteristics of the ore type to gain a full understanding on the conversion of drilling results to mined grades, and, in addition, bring forward a contribution to cashflow.

The intention is to continue mining and processing RoD material into the future as rapidly as possible, with the appropriate permitting to allow a mechanised mining system to be undertaken.

This first phase of mining is expected to take two to three months. Positive outcomes of this phase will be linked with an expanded deeper drilling programme, designed to ascertain the extent to which the gold mineralisation extends at depth in the mine. This can be done concurrently with general development and mining of gold bearing zones.

AuStar Gold CEO, Tom de Vries, said: "Processing of our first parcel of gold-bearing material from the Rose of Denmark gold mine is another significant achievement for AuStar Gold.

"This continues the excellent progress made at the RoD mine, where diamond drilling commenced in December 2017, resulting in an exceptional number of visible gold intercepts, and has now resulted in gold-bearing material being processed at our gravity processing plant in a period of just eight months.

"This programme demonstrates the benefits of our recent decision to acquire 100% of this prospective mine, and the experience and capability of AuStar's geological and mining team in exploring, analysing, mining and processing material from projects within its regional exploration portfolio in a safe, timely, compliant and cost-effective manner. "